Find out what clicks on FoxBusiness.com.
The family that founded Nordstrom and El Puerto de Liverpool buys Nordstrom, paving the way for the retailer resume operations as a private company.
Nordstrom announced its agreement Monday that the Nordstrom family and the Mexico-based company would repurchase shares they do not already own.
The planned all-cash transaction, worth $6.25 billion, comes about 10 months after Nordstrom established a special committee to evaluate the Nordstrom family’s proposals. The Nordstrom family and El Puerto of Liverpool submitted a $23 per share offer to take the company private in September.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The Nordstrom family, including CEO Erik Nordstrom, CBO Pete Nordstrom and others, and Liverpool’s El Puerto will pay $24.25 per share to acquire the retailer, Nordstrom said Monday.
Shoppers leave a Nordstrom store on May 26, 2021 in Chicago. (Scott Olson/Getty Images)
This price “represents a premium of approximately 42% to the unaffected closing price of the Company’s common stock on March 18, 2024, the last trading day before media speculation regarding a potential transaction,” the retailer said .
“The Special Committee of the Nordstrom Board of Directors has considered this proposal in relation to the Company’s self-sustaining growth prospects. After a rigorous and independent evaluation and consultation with external financial and legal advisors, the Special Committee has concluded that: “There is unanimity that this transaction provides greater value for all public shareholders at a significant premium to the unaffected share price,” said Nordstrom President Brad Tilden.
Nordstrom, the Nordstrom family and El Puerto of Liverpool expect the transaction to be completed in the first six months of next year. It will require “the approval of the holders of two-thirds of the common stock of the Company and of the holders of a majority of the shares of the Company not owned by the Nordstrom family or Liverpool or their respective affiliates and of the directors and officers of the company’s Section 16” to pass, according to Nordstrom.
CLICK HERE TO LEARN MORE ABOUT FOX BUSINESS
The retailer will officially become a private company again after that. It has been a publicly traded company for more than five decades, since its IPO in 1971.
A Nordstrom department store in the upscale Broadway Plaza shopping center in downtown Walnut Creek, California on July 30, 2017. (Collection Smith/Gado/Getty Images)
The Nordstrom family will own 50.1% of the retailer post-transactionmaking them the majority shareholders, according to the company. El Puerto de Liverpool’s stake will be 49.9%.
| Teleprinter | Security | Last | Change | Change % |
|---|---|---|---|---|
| JWN | NORDSTROM INC. | 23.06 | +0.35 |
+1.54% |
The company, co-founded by John W. Nordstrom and Carl Wallin, dates back to 1901. It originated in Seattle, the city where the two men opened their first store and where the company is still headquartered today.
Erik Nordstrom said the news “marks an exciting new chapter for the company.”
Shoppers enter the Nordstrom store April 1, 2003, on Michigan Avenue in Chicago. (Scott Olson/Getty Images)
At the end of the third quarter, the retailer operated 93 Nordstrom stores, six Nordstrom Local locations, 280 Nordstrom Rack stores and two Last Chance clearance stores, according to its third-quarter earnings report.
HOW MACY’S CAN TURN BUSINESS BACK WHILE DEPARTMENT STORES STRUGGLE
Nordstrom generated $10.69 billion in revenue during the first three quarters of 2024. Its net income, meanwhile, was $128 million over the same period.
At the end of November, the retailer forecast “stable growth at 1.0%” in annual revenue for the year “compared to 53 weeks of fiscal 2023.”
It is market capitalization was hovering around $3.99 billion as of mid-morning Monday.
